Market entry mode to the United States market : 720 Degrees Oy

Abstract

This bachelor thesis was conducted according to the need of 720 Degrees Oy. The case compa-ny, 720 Degrees Oy, is a small firm operating in health, wellness and fitness industry, specialized in indoor air quality. 720 Degrees Oy was interested to expand their business to the United States market, and was thus looking for a suitable method.

The objective of this thesis was to collect information about different entry modes and factors affecting this choice in order to provide recommendation for the case company. Thus, the research question was to find out the most suitable entry mode to enter the US market for the case company.

Theoretical foundation combined theory of motivation of internationalization, different entry modes, internal and external factors affecting the choice of entry mode. Then, based on the theo-ry found, qualitative research was carried out in form of telephone interview and face-to-face in-terview. From December 2014 to January 2015, eight telephone interviews with potential custom-ers in the US market were conducted to find out a customer value proposition. In February 2015, the researcher also carried out two face-to-face interviews with representatives of Finnish com-panies which successfully established offices in the US market in order to learn their experiences. The collected data was analysed by using qualitative summary method.

The findings indicated that in the beginning, the most suitable option for 720 Degrees Oy to enter the market is a direct export mode. If the company gains good results in this initial phrase, it is recommended to gradually involve in a sales office. The thesis also discussed about the reliability and validity of the data and results, researcher’s learning experiences during the thesis writing process and suggested further research.